EC 2020: Strategies for Electrical Contractor Business Development in the New Energy Economy Category: New Business Sector
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1 EC 2020: Strategies for Electrical Contractor Business Development in the New Energy Economy Category: New Business Sector David R. Riley, Ph.D. Associate Professor Architectural Engineering Department Pennsylvania State University Thomas E. Glavinich D.E., P.E. Associate Professor Civil, Env, & Arch. Engineering The University of Kansas Justin Reginato, Ph.D., P.E., LEEP Green Assoc. Associate Professor Construction Management Program California State University, Sacramento
2 Challenge Shifting Landscape Energy economics Boom in line contracting Recession in building construction New technologies New business methods
3 Challenge and Opportunity Many contractors are lamenting the loss of business or the inability to capitalize on new work Too many contractors are currently focused on holding on to whatever shrinking market share they have left, not increasing their market share However, some aggressive electrical contractors are capturing work in new fields and are growing despite the recession Business development is a key tool in this growth
4 Project Outcomes Executive Summary and Research Report Blueprint for Business Development Short Course
5 E.C. Business Development Success Factors 1. Healthy core business to build upon 2. Entrepreneurial spirit and skill to build business 3. Technical competence in the targeted work 4. Process experience in the targeted business 5. Knowledge of marketing, sales, and relationships
6 Blueprint Objectives Provide an understanding of business development. Explain why business development is critical to the future success and survival. Show how to successfully implement a business development program through examples and case studies. 30 page guide with definitions, descriptions, and comparative examples
7 Blueprint Focus Applies to electrical contracting firms of all sizes. Focus on smaller electrical contracting firms need effective business development processes but don t have the time and resources Includes 4-page table with variable strategies based on size of EC
8 Business Development & the Services Lifecycle
9 Business Development, Marketing and Sales Term Definition Examples Marketing Matching the merits of a product, service or capacity with the needs of a client Sales Business Development Securing business transaction that keep core business functions functioning and profitable Simultaneous effort to understand and align a firm/industry around an expanding or emerging opportunity in the marketplace Promoting the unique capabilities of an E.C. to complete complex projects in the healthcare field Securing new clients for services and maintenance agreements in which that your firm has strong capabilities and/or slack capacity Joining a local business roundtable to expand knowledge of trends and visibility of firm; Participating in a regional energy forum/roundtable; Outreach to a local municipality that has a large portfolio of facilities; Participating in new policy development pertaining to energy code or certifications; Loss-leader project completed to build knowledge and experience in a new product or business sector.
10 Recommendations Develop literacy of business development process and strategies Design strategic plans appropriate for EC expertise, size and region Capitalize on NECA/IBEW/NJATC and ELECTRI International Monitor new market development
11 New Technology Markets Expanding markets of new technologies: Transmission system upgrades Energy Efficiency: Combined Heat and Power (CHP) Energy Storage / Micro-grids Solar Photovoltaic Systems Electric Vehicle Infrastructure
12 Training Centers are Business Development Hubs Los Angeles Northern California Chicago Philadelphia: GridSTAR Open House: Wed. Oct 30 11am - 3pm
13 Short Course Objectives At the conclusion of the course, participants will be: Able to explain the roles of business development in growing and maintain healthy businesses Understand the difference between business development, marketing, and sales Be familiarize with the business development process Understand the role of NECA, the IBEW, and LMCC s in business development
14 Thank you David R. Riley, Ph.D. Associate Professor Architectural Engineering Department Pennsylvania State University Thomas E. Glavinich D.E., P.E. Associate Professor Civil, Env, & Arch. Engineering The University of Kansas Justin Reginato, Ph.D., P.E., LEEP Green Assoc. Assistant Professor Construction Management Program California State University, Sacramento
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